Opinion on American Funds

or Register to post new content in the forum

47 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Feb 27, 2008 9:57 pm

I haven’t looked at it for a while, but they used to have an overlap chart.  It wasn’t as bad as you would think, CAIBX in particular doesn’t really overlap much with anything, as I recall. 

  By the way, I just landed a $400,000 rollover from an EDJ client.  The EDJ advisor is an American Funds true beliver, and told his client that she should put this rollover with her existing $400,000 in American Funds.  That saves them about $2,000 on breakpoints over diversifying with a different fund family.  It also puts about 80-90% of their total net worth (100% outside of their house and a small business) with one fund company.    When I told her that I could still reach the breakpoint, but that it would only cost her about $2,000 to diversify with another company, she couldn't understand why he wouldn't have presented that option.  I may eventually get the existing American Funds, but I did sign the paperwork for the new money.    The best part?  We called the 401k provider and changed the check, which was to go to EDJ, to go to my firm.  He still doesn't know he lost the account.  I probably shouldn't enjoy that part as much as I do, but I must admit that taking funds from EDJ warms my heart more than a regular transfer. 
Feb 27, 2008 10:06 pm

caibx has 45% overlap with cwgix and 35% with income fund of america.  Those are the two highest overlaps last I checked.

Feb 27, 2008 10:34 pm

[quote=EDJ4now] I haven’t looked at it for a while, but they used to have an overlap chart. It wasn’t as bad as you would think, CAIBX in particular doesn’t really overlap much with anything, as I recall.



By the way, I just landed a $400,000 rollover from an EDJ client. The EDJ advisor is an American Funds true beliver, and told his client that she should put this rollover with her existing $400,000 in American Funds. That saves them about $2,000 on breakpoints over diversifying with a different fund family. It also puts about 80-90% of their total net worth (100% outside of their house and a small business) with one fund company.



When I told her that I could still reach the breakpoint, but that it would only cost her about $2,000 to diversify with another company, she couldn’t understand why he wouldn’t have presented that option. I may eventually get the existing American Funds, but I did sign the paperwork for the new money.



The best part? We called the 401k provider and changed the check, which was to go to EDJ, to go to my firm. He still doesn’t know he lost the account. I probably shouldn’t enjoy that part as much as I do, but I must admit that taking funds from EDJ warms my heart more than a regular transfer. [/quote]



Nice kill, EDJ4now
Feb 27, 2008 11:13 pm

HenryHill - I guess I just showed why you shouldn’t answer from memory questions about a chart you haven’t seen in 3 years.  I think there was something I was pairing it with a few years ago with low overlap, but I could be wrong about that.  I don’t use American all that much anymore.

  Ashland - Thanks.
Feb 28, 2008 3:25 pm

Thanks for the response everyone. I need to do a lot more research (I guess I should sign up for a membership on morningstar?)

Feb 29, 2008 2:43 am

Through my limited investment training with edward jones, it really suprised me at how much we are bombarded with American funds…They are safe, but way oversized, they do not work well for many of my investors.  For many, American funds are too broad ranged and unable to hit the “style boxes”.   Possibly some very good buy and hold investments for the medium and smaller clients,  but if anyone is hitting NAV with these funds, more thought should be injected by the advisor.

Feb 29, 2008 3:32 am

I nominate Jonesness for president of the national stupid club. 

Come on JW, hire some people that don’t have puss for brains.  

Feb 29, 2008 3:38 am

Instead of making such an offhanded comment, please elaborate on what you disagree with… Thank you

Feb 29, 2008 4:47 am

Offhand?  Nope. Put down a partner of mine, expect a response.  New Jones, your clients don’t care about style boxes.  They care about educating their kids, retiring with some dignity, perhaps giving some money to their church or charity and leaving some money for the heirs.  With the next stage/NAV, clients care about low expenses, a consistent system, low turnover & not being embarrassed.  Started at Jones a long time ago with Weddle as my training partner.  Wish I had never sold a  share of Putnam, Colonial, Van Kamp or any of the other EDJ pref’d funds.  AF’s has been a great partner for the last 3 decades for myself and more importantly for my clients.  Do yourself a favor, toss out the Morningstar boxes and listen to your clients.   You’re going to encounter a lot worse things in your career than an AF’s  ICA brochure.

Feb 29, 2008 5:06 am

Yes, very offhanded, and very offending.  I'm thinking you are a total idiot..but I'm not calling you one. Why don't you refrain from posting anything you would not say to a persons face. You dont know me..you don't know my clients,  EJ and American does not fit my advisory methodology..they offer no asset allocation. My opinion of american funds is my opinion,  I'm not fond of them, but you can love them all you want.  Your opinion..what is wrong with VK? Why do you think American funds is so great? Also, you are delusional to believe you are a partner with American funds..you are just another broker.

Feb 29, 2008 6:20 am

It would be my delight to call you an idiot, especially in front of some other newbies, or even better,  in front of your family, although in light of this and your previous posts, they already know that.  Maybe it would shake you out of your current state of funk so you could have a successful career relating to people.   You’ve stated your opinion on this board and I’m calling you on it.   Don’t want a response…don’t post.   And if you think I’m offensive, god help you in this business.  You have no chance.

“advisory methodology” ??  I bet you have prospects throwing money at you with that one, better TM it.

Is this a new Jones thing to be so touchy when someone mentions “partner”?? Webster-“partner” - def. “someone who shares with or associates with another in some action or endeavor”  


Feb 29, 2008 2:03 pm
Cerberus, You are over compansating for your lack of brains and balls...I know you are pissed off that I do not favor american funds..I seriously do not think you would call me an idiot, in front of my family, If I merely stated that I do not like American funds in person..The internet makes the little broker brave with his anonymity.... What do you think would happen if you did? I have no chance?? How long do you think I've been in this business?  Yes I have a methodology...obviously...you don't.... just buy american funds and keep your fingers crossed.  You are a SAD OLD MAN.
Feb 29, 2008 2:13 pm

And you obviously have nothing else better to do than to protect yourself on an anonymous forum.

  You've been a member here for 3 days, and you already have 53 posts.   What do you think that says to us about how you spend your time?
Feb 29, 2008 2:31 pm

Yes…I’m not working much…just planning my move out.  I get alot of good info from some very helpful anonymous forum members that have been in similar situations.  Actually, I’ve spoken to  2 real people via phone from this forum…so I am not anonymous.  Sorry if I come across as brash on these posts, I’ve said it before…I don’t take crap and I call it like I see it.  Don’t worry skippy and anyone else concerned, I’ll be gone for good soon after I make my move. 

Feb 29, 2008 2:53 pm
Cerberus:

It would be my delight to call you an idiot, especially in front of some other newbies, or even better,  in front of your family, although in light of this and your previous posts, they already know that.  Maybe it would shake you out of your current state of funk so you could have a successful career relating to people.   You’ve stated your opinion on this board and I’m calling you on it.   Don’t want a response…don’t post.   And if you think I’m offensive, god help you in this business.  You have no chance.

“advisory methodology” ??  I bet you have prospects throwing money at you with that one, better TM it.

Is this a new Jones thing to be so touchy when someone mentions “partner”?? Webster-“partner” - def. “someone who shares with or associates with another in some action or endeavor”  


  FYI- Jonessess deal is he was a broker that transfered to EDJ a bit ago.. (from what i can gather) and didn't do his homeowrk and now is unhappy with the firm or more along the lines of the way we do business. So he is planning to move. He took over an office and also brought some assets. I hate to say it but this is exactly why I hate transfer brokers that come to Jones. (I should clarify.. Producing transfer brokers) Our way of doing business doesn't line up with the way most firms (other than Indy) do business and so often they are unhappy here and transfer out again.   Miss J
Feb 29, 2008 3:26 pm
Cerberus:

Offhand?  Nope. Put down a partner of mine, expect a response.  New Jones, your clients don’t care about style boxes.  They care about educating their kids, retiring with some dignity, perhaps giving some money to their church or charity and leaving some money for the heirs.  With the next stage/NAV, clients care about low expenses, a consistent system, low turnover & not being embarrassed.  Started at Jones a long time ago with Weddle as my training partner.  Wish I had never sold a  share of Putnam, Colonial, Van Kamp or any of the other EDJ pref’d funds.  AF’s has been a great partner for the last 3 decades for myself and more importantly for my clients.  Do yourself a favor, toss out the Morningstar boxes and listen to your clients.   You’re going to encounter a lot worse things in your career than an AF’s  ICA brochure.

  Good for you. Not every FA have clients that are as naive. We are jealous however.
Feb 29, 2008 3:56 pm

Man, you guys all got up on the wrong side of the bed today.  Can’t we just accept that different advisors do business different ways?  We all know there are 1000 different ways to get to the same answer in investing.  Some people like to build custom portfolios and actively trade for profits (ie. Jonesness), others like the buy-and-hold, let the fund manager do it philosophy (me, Cerberus, Ms. Jones).  Some people use SMA’s, others use ETF’s or Index funds.  If we all get decent returns and don’t blow our clients up, who cares?

Feb 29, 2008 8:14 pm

I too wish my clients  are as naive as you Cerberus...you demon of the pits you..

  **But they're not..hence American funds is a small part of my business I don't know if anyone else caught it..but he trained with Weddle..that is VERY impressive.   BTW, you snip and snap just like your screename.
Mar 1, 2008 12:21 am

…cerebrus…a greek mythological demon!! SSWWWEEEEETT!  I like it!

  I took most of the day off golfing with an employment attorney.  I will prob retain him regardless of wirehouse or indy. Icecold, so many people have been very helpful on this forum..it has actually been a pleasant surprise, I think I will stick around while I go through transition.  
Mar 19, 2008 5:05 pm

Check this out:

  http://money.cnn.com/2008/03/18/pf/funds/Ask_the_mole.moneymag/index.htm?section=money_pf   I don't know who I hate more: people who turn to journalists for answers or journalists who give "advice" not knowing a person's full picture.